In a Top-Heavy EHR Market, Optimization Becomes the Focus

Guidehouse's James McHugh in Healthcare Informatics

Consolidation in the EHR market is forcing many vendors to exit the space. Now, the onus is on those remaining vendors to make sure their products streamline processes and improve the user experience. Many providers struggle with EHR installs because they don’t prioritize operational requirements and financial risks early and often, says Guidehouse’s James McHugh in Healthcare Informatics. EHRs “are very complex systems…and they have to be customized, so this represents a huge disruption to the revenue cycle. Someone needs to manage that and mitigate the financial risk associated with the install.”

Hospitals and health systems are also becoming increasingly focused on getting benefits from the EHR product, and therefore are deciding what’s in their best interest to prioritize for optimization. McHugh adds, "The top EHR vendors are now providing resources on the back end for their installs for remediation or even outsourcing of key revenue cycle functions. So this is a signal that the industry is starting to accept poor implementations."

"In a sense, this is offsetting poor implementation, and that’s pretty troubling. Rather than the vendors getting the original implementation right, they are being paid additional capital to fix the broken implementation. This presents conflict,” he says. 

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